Imagine that the executive board of the nonprofit you serve on is hit with a lawsuit by a former employee who alleges wrongful termination. You know the claim has no merit, but your first step should be to verify that your organization has adequate liability protection. A directors & officers (D&O) policy is imperative in situations like this one. This type of policy is very different from a general liability policy and it is a critical component in protecting the personal assets of an organization’s key individuals, such its board members.

Nonprofit board members have a tendency to believe that the altruistic nature of their organization’s mission and their overall good intentions will protect them from litigation. However, this is a dangerously false notion. Nonprofit organizations, just like corporations, are sued every year by a range of people such as:

Employees/Former Employees

Donors

Government Agencies

Volunteers

Vendors

Beneficiaries

Having merit or not, a lawsuit against a nonprofit whose board you serve on can be very damaging because it puts your personal assets and those of your fellow board members at high risk. A D&O policy can help protect both your organization and its key individuals (directors, officers, employees, and even volunteers). Moreover, having a D&O policy in place will make it easier for you to attract and retain talented board members, which is often the life blood of an organization.

At AssuredPartners NL, we offer an extensive variety of liability insurance solutions for you. We will help you select or customize the best program for you, and then ensure that it is meeting your needs and requirements. We encourage you to reach out to one of our experts and let us find the best policy for your organization.